You apply for debt counselling by completing a an application form. The form name is a Form 16. we need to speak to you about the procedure and fees before you complete the form 16, we will check it for errors. Thereafter you can print, sign and fax it to us together with you supporting documents.

How long does it take to apply for debt counselling?

The application process is fast. We have a very experience back team that will process your application as soon as we receive your form 16 plus supporting documents. We will notify all your creditors with a 17.1 Notice. This takes 2-5 days, normally shorter. As soon as all your creditors have been informed, your are protected from creditors. Please go to the Debt Counselling Process for more info.

How will debt counselling influence my credit score?

We need to notify the National Credit Regulator that you have applied for Debt Counselling. The NCR will then notify all credit bureaus that you are in debt counselling. When someone does a credit check on your profile, they will see that you are in debt counselling and they may not give you credit. But when opt out of debt counselling, the note will be removed from your credit file.

How will debt counselling influence my ability to apply for credit in the future?

When you have taken control over your debt or paid off all your debt, you will apply to exit debt counselling. You complete a form 17.4 and in 10 working days you will be removed from debt counselling. All credit bureaus will remove the note on your file. You are free to take out new debt. We don’t know if the credit providers will keep it on file that you were in debt counselling, nor do we know if they will penalize you. Debt counselling is still to new to know that, but remember that you have repaid all your debt to the creditor so they should not penalize you.

Yes, it will be protected. Debt counselling is there to help the over in debted customer by helping the customer to manage with his monthly expenses. The creditors help by agreeing to lower the monthly payments. As soon as the creditors have agreed to the lower payments, they may not repossess any of your assets.

When the customer is still in the application phase he is protected as well. Credit providers must give the customer 60 working days to work the process. Customers must start paying the Payment Distribution Agency in the first month of applying for debt counselling.

I have received a Summons, can you help me?

The biggest mistake that most people make is to leave debt counselling to late. As soon as you have received a summons from your creditor we can not stop repossession. You can however still ask your creditor to stop the repossession. You will have to negotiate a payment plan with your creditor. As soon as we have detail of your new payment plan and your creditor has agreed that you can place the payments under debt counselling we can continue with debt counselling.

The attorney of the creditor will normally send you a Section 129 final warning before the issue of a summons. You will have 10 working days to apply for debt counselling after the issue of this notice. If you don't apply in time you will not be able to include this debt under debt counselling.

Who do I pay each month when in Debt Counselling?

You will be allocated a Payment Distribution Agency (PDA) where you will make your payments each month. Do not pay any debt counsellor any fees. All funds must be paid to PDA.

How does the payment to creditors work?

You will make one payment to the Payment Distribution Agency every month. There are currently 6 PDA in South Africa. We will send a list of all your creditors with amount to be paid to the PDA. The PDA will pay all your creditors for you each month. You will not pay your creditors yourself. All payments must go via the Payment Distribution Agency. Even if you want to make a once off additional payment, you must pay the PDA.

What will I pay each month?

The amount you will pay to the PDA depends what you said in your application form you can afford to pay each month. This will be the amount you have left each month after paying for your essential expenses before any debt.

Voluntary Sequestration is when you apply to court that you want to surrender all your assets to your creditors. You will have to prove to the court that sequestration is your only outcome, because you are unable to pay your creditors. The court will appoint an administrator over all your assets. The administrator will have full control over your assets. Your assets will then be sold to the highest bidder and proceeds after cost to administrator will be divided among all your creditors. Your creditors will have to write off the balance of the debt. The creditors will always keep note off this debt. You can apply for rehabilitation after 5 years, but this does not mean you will get a loan again. While in sequestration you may not sign contract or be a director of your own company. It will be very difficult to do business for a very long time.

Liquidation is the same process as sequestration, but is applicable to companies and not individuals.

Will my creditors stop calling me?

Your creditors will stop calling you as soon as they have received the 17.1 Notice. Sometimes not all the departments of the bank/store are aware that you have applied for debt counselling and will still call you. That is why we will give you copies of the 17.1 Notice to forward to you creditor. They will then see that you have applied for debt counselling and stop calling you.